Chapter 1 Notes - Chapter 1: Information Systems in...

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Chapter 1: Information Systems in Business INFORMATION TECHNOLOGY’S ROLE IN BUSINESS Information Technology’s Impact on Business Operations: Businesses must undertake enterprise wide initiatives to achieve broad general business goals such as reducing costs. Information technology plays a critical role in deploying such initiatives by facilitating communication and increasing business intelligence. Ex) Email and cell phones Typical businesses operate by functional areas (functional silos) o Accounting provides information about the finances of the business including recording, measuring and describing financial information. o Finance deals with strategic financial issues associated with increasing the value of the business while observing laws and social responsibilities. o Human Resources (HR) includes the policies, plans, and procedures for the effective management of employees. o Sales is the function of selling a good or service and focuses on increasing customer sales which increases company revenues. o Marketing is the process associated with promoting the sale of goods or services. o Operations Management (Production Management) includes the methods, tasks, and techniques organizations use to produce goods and services. Transportation is part of this. o Management Information Systems (MIS) is the function that plans for, develops, implements and maintains IT hardware, software, and the portfolio of applications that people use to support the goals of an organization.
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Functional areas are interdependent . INFORMATION TECHNOLOGY BASICS Information Technology is any computer-based tool that people use to work with information and support the information and information-processing needs of an organization. Information: Data is raw facts that describe the characteristics of an event. Information is data converted into meaningful and useful context. (Best-selling item, worst-selling item, best customer, worst customer) IT Rescources: The plans and goals of the IT department must align with the plans and goals of the organization. People use information technology to work with information . If one fails, they all fail. IT Cultures: Culture will influence the way people use information and will reflect the importance that company leaders attribute to the use of information in achieving success or avoiding failure. Four common information-sharing cultures exist today: Organizational Information Cultures Information-Functional Employees use information as a means of exercising influence or power over others. Information-Sharing Employees across departments trust eachother to use information to improve performance. Information-Inquiring
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This note was uploaded on 05/19/2008 for the course BIS 111 taught by Professor Nayar during the Summer '07 term at Lehigh University .

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Chapter 1 Notes - Chapter 1: Information Systems in...

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